From 1992 onwards, Pisces transformed itself into a diversified conglomerate. Examine to what extent did Pisces’ corporate-level strategies fulfilled its strategic direction. Introduction There are three different components we will be discussing about for this question. We will need to determine (1) What is Pisces’ corporate-level strategy? (2) What is Pisces strategic direction? (3) How fulfilled was the strategic direction on the strategies used. Firstly, to understand what Pisces’ corporate-level strategy is, understanding the term of is vital. Corporate-level strategy is strategies undertaken by firms to gain competitive advantage through diversification of single business operation to multiple operations competing in different product market (Ireland 154). From the concept, we will realise that Pisces had also adopted the use of International Strategy. International Strategy is strategies taken by a company by selling goods or services outside its home market. In the case of Pisces, they expanded by diversifying their operation out of its home (Singapore) market to Saudi Arabia, China, Thailand and more. We will discuss about the multi-domestic strategy that I feel that was the strategy adopted by Pisces. Multi-domestic strategies are strategies in which operation decision are made by the strategic business unit of each country to allow customization of decision towards the local market. For these areas, I will be making use of the Value-Creating Diversification Strategies (Ireland 159) and the International Corporate Level Strategies diagram to help me to assess the types of strategies deployed by Pisces. Secondly, we will be going into the understanding of Pisces strategic direction. Setting a strategic directions include stating the overall goals a company seek to achieve and as discussed in point 1, the strategies taken to achieve the goals. In addition, the main reason for the use of diversification by company is value creation. Broadly speaking, the strategic directions normally refer to the vision, mission statements and goals and objectives of the company.3 From the case study, it was indicated that Pisces’ interest was to turn from a family-owned interest it to a public company thus I believe that value creation is the one of the goal for Pisces. Lastly, we will evaluate to what extend was the direction achieve by Pisces. Pisces decided to tap on the international market through diversifying into areas of businesses that are unrelated to its core retailing/garment industry. We will come to realise that the diversification that Pisces used is ultimately not favourable to them.
Every company has internal and external forces that effect how they operate within the community in which they are located and also within their own walls. These internal and external forces play a strong impact on the company’s profitability and success. These forces have an effect on what consumers they attract or ignore and how they are perceived by those who have the buying power. A mistake any analyzing and implementing measures to assist with these factors could greatly affects a company’s bottom line and success. This is why any company wanting to grow and be successful will need to take all of these forces; sociocultural, technological, economic, environmental and political-legal into consideration in creating their strategic plan.
Generally, strategic intent is a compelling statement about where a corporation expects that succinctly conveys a sense of what the company desires to accomplish in the long term. According to the article “Strategic Intent,” Hamel and Prahalad argue that “The strategic intent usually incorporates
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
...ative aspects of diversification, for example through better corporate planning, human recourse management and reaching further synergies between its various business lines.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 86(1), 25-40.
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
Hitt, M., Ireland, R. & Hoskisson, R. (2010).Strategic Management: Competitive and Globalization, Concept and Cases. Mason, Ohio: Cengage Learning
We will need to evaluate whether Pisces business level strategies are able to custom and enhance Pisces core competencies to achieve above average returns. Pisces approaches relevant business strategies over the period to suits its customers. They clearly determine their target market segment and satisfying their needs with arrange in a line with its core competencies.
Mason Carpenter, G. S. (2013). Strategic Management: Concepts and Cases Second Edition. Harlow: South-Western Pub.
Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard business review, 25-40.
Hitt, M., Ireland, and Hoskisson, R. (2009).Strategic management: Competitive and Globalization, Concepts and Cases. In M.Staudt & Stranz (Ed).
...d to learn from the chess game in terms of the ground rules and specific strategic management points of views. There are three common strategic principles and management expertises that the corporations need to be aware of and follow. First of all, it is highly advisable for them to conduct a macro environment evaluation through resorting to the PESTLE Analysis and the Porter’s Five Forces Model. Second, it is of significance to carry out self evaluation analysis with a view to better understanding the firms’ own advantages and capabilities through using SWOT Analysis. Last but not least, the corporation is advisable to conduct an all rounded competitor analysis in order to gain a detailed acknowledgement of the current circumstance possessed by the major competitors so as to assist them to generate a better corresponding strategies in the future business operation.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
The key role in solving strategic tasks belongs to strategic planning, which is the process of developing and maintaining strategic balance between organization’s goals and resources in the changing market environment. The purpose of the strategic planning is to determine the most promising fields of activity providing its growth and prosperity. Strategic planning is a component of a broader concept “strategic management”. All four management functions (planning, organizing, leading and controlling), when talking about strategic management include strategic orientation. When viewing strategic planning from the highest level possible within a company, the planning function is the area that stands out as the most important area which involves a great deal of development and focus.
Strategic management has shown to enhance the company’s profits and market shares. Companies need to utilize strategic management in order to improve that their performance and organizations are set. Some of the benefits of strategic management are it brings new opportunities and development, the manager is more involved in their job role, the quality of the company is enhanced, implementing models that will bring the company growth and profits, it helps the manager to be organized in order for them to be successful, it brings certainty to the company, and provides management with a guide to what the company is needing to accomplish with their goals for the future. According to Nmadu (2007) he stated “strategic management has become more important to managers in recent years and defining the mission of their organization in specific terms have made it easier for managers to give their organization a sense of purpose” (Dauda, Akingbade, and Akinlabi, 2010, p.100). Strategic management can also have its disadvantages. A few disadvantages are time and effort that is put into the company, and discussing what is important for the company’s long-term goals. Another disadvantage is managers stay on the planning stage but forget to implement and take control of the plan. If strategic management is not enforced than this can cause effects on the companies market shares, and profitability. Enforcing a strategic plan will play a major role in the companies